UNIT

INTRODUCING ORGANIZATIONAL COMMUNICATION

Effective communication is a building block of successful organizations,

In other words, communication acts as organizational blood.

All managers and employees need to be aware of how people behave in order to
provide the best working environment. Organizational behavior is about how people
may be motivated to work together in more effective ways. The interaction required
to direct a group toward a set of common goals is called organizational
communication.

In each of these interactions, we are occasionally satisfied but sometimes frustrated

by incompetence, insensitivity, lack of coordination, and red tape, all of which result
from ineffective organizational communication. A deeper understanding of
communication permits us to better comprehend the factors that contribute to a
successful organization.

It is difficult to come across a job advertisement which does not mention eligibility
criteria such as “communicativeness” or “communication skills.” Concepts such as
“organizational communication,” “corporate communication” or “business
communication” long ago became key terms for management, entrepreneurship and
human resources.

What is meant by “organizational communication”? What are its major functions and
types? What are the most important communication skills in the workplace? What
are the most common barriers and obstacles to contemporary organizational
communication? The answers to these and other questions throughout this course
will give you a better understanding of the phenomenon and process of
organizational communication.

The importance of communication in an organization can be summarized

as follows:

1. Communication promotes motivation by informing and clarifying the

employees about the task to be done, the manner they are performing the task,
and how to improve their performance if it is not up to the mark.
2. Communication is a source of information to the organizational members
for decision-making process as it helps identifying and assessing alternative
course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes,
i.e., a well informed individual will have better attitude than a less-informed
individual. Organizational magazines, journals, meetings and various other
forms of oral and written communication help in molding employee’s
attitudes.
4. Communication also helps in socializing. One cannot survive without
communication.
5. Communication also assists in controlling process. It helps controlling
organizational member’s behavior in various ways. There are various levels of
hierarchy and certain principles and guidelines that employees must follow in

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 an organization. They must comply with organizational policies, perform their
job role efficiently and communicate any work problem and grievance to their
superiors. Thus, communication helps in controlling function of management.

An effective and efficient communication system requires managerial proficiency in

delivering and receiving messages. A manager must discover various barriers to
communication, analyze the reasons for their occurrence and take preventive steps to
avoid those barriers. Thus, the primary responsibility of a manager is to develop and
maintain an effective communication system in the organization.

So, organizational communication refers to the forms and channels of

communication among members of organizations such as corporations, nonprofits or
small businesses. Studies have found a strong relationship between the levels of
communication in an organization and job performance and satisfaction.
Organizational communication can be formal or informal, flow in various directions
and make use of various media.

Directions of Communication

Organizational communication takes place upward, downward and horizontally.

Downward communication flows from the managerial and executive levels to the staff
through formal channels such as policy manuals, rules and regulations and
organizational charts. Upward communication is initiated by staff and directed at
executives; it frequently takes the form of a complaint or a request. Horizontal
communication occurs when colleagues meet to discuss issues of common interest,
resolve problems and share information.

Leading

In the book “Organizational Communication: Challenges of Change, Diversity, and

Continuity,” William Neher (1997) identifies the five primary functions of business
communication as leading, rationalizing, problem-solving, conflict management and
compliance gaining. The function of leading is important to enable management to
issue instructions in a clear, specific manner so that workers are able to follow them
without difficulty. This is generally downward communication.

Rationalizing

This function enables management to explain the reasons for instructions in a way
that workers can understand. In this context, it is downward communication;
however, rationalizing is also important for enabling workers to bring issues to the
attention of management, using upward communication to do so. If a worker
identifies a motivation problem, for example, he may communicate this upward
formally to management and use rationalization to highlight the potential impact of
the problem on profitability.

Problem-Solving

Most companies hold regular meetings to discuss issues such as production cycles,
delivery times, price margins and other areas where unusual situations could arise
that may affect the performance of a business. In these meetings, organizational

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communication plays an important role in tabling problems, brainstorming potential
responses and finalizing solutions. In this way, a company obtains maximum benefit
from the abilities of those involved in the communication, which flows horizontally
and often informally.

Conflict Management

Conflict in the workplace can lead to the loss of talented employees, the lodging of
grievances and possibly lawsuits. Managing conflict by bringing all parties together to
discuss their differences in a safe, moderated environment is an important function
of organizational communications. This type of communication usually involves all
three directions of communication, and, although discussions may be informal, the
final decisions are usually communicated formally.

Gaining Compliance

Gaining the compliance of employees is necessary for them to adhere fully to

instructions. To do this, management needs to listen to feedback from the staff and to
take account of their ideas and comments. Feedback or two-way communication can
be both upward and downward or horizontal and may be formal or informal, but it is
important for a company to enable open communication channels to motivate and
achieve the best performance from employees.

Our actions affect not only ourselves, but also those around us. Many of our
professional decisions involve ethics. If we tell a lie, we can lose someone’s trust and
undermine our own integrity. If we use shoddy materials or workmanship on the job,
we can jeopardize the safety of others.

Questions of morality and ethics can be found at all levels of society. Ethical behavior
is equally important in the workplace as it is in our personal lives. Everywhere
business is conducted, ethics matters.

A successful business depends on the trust of various parties—employees, managers,

executives, customers, suppliers, and even competitors. Six ethical terms form the
foundation of trust upon which ethical business practice is built:

 Ethics  Morals  Character

 Values  Integrity  Laws

Ethics

Ethics refers to a set of rules that describes acceptable conduct in society. Ethics serve
as a guide to moral daily living and helps us judge whether our behavior can be
justified.

Ethics refers to society’s sense of the right way of living our daily lives. It does this by
establishing rules, principles, and values on which we can base our conduct. The
concepts most directly associated with ethics are truth, honesty, fairness, and equity.

While ethics is a societal concern, it is of critical importance to the professions that

serve society. Because professionals such as physicians, attorneys, engineers, and

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property and facility managers provide services that affect our welfare, they develop
professional codes of ethics that establish professional standards for behavior.

Examples of the types of standards found in professional codes of ethics include:

 An attorney or physician maintaining client-patient confidentiality

 An accountant not using client information for personal gain

Values

Values are defined as the acts, customs, and institutions that a group of people regard
in a favorable way. Statements of value typically contain words of approval,
disapproval, and obligation. Some of these words might be good, bad, should, and
should not. However, value judgments do not have to contain specific value words.
“That is a lie” does not contain a particular word of disapproval, but the implication
that a lie is wrong is understood.

Values are what really matter to us most—what we care about. For instance, family
devotion, respect for the environment, and working hard for a day’s pay are three
values that can evoke a response in many people.

Morals

Morals are a set of rules or mode of conduct on which society is based. Certain moral
elements are universal, such as the laws forbidding homicide and the basic duties of
doing good and furthering the well-being of others. With morals serving as the
underpinning of society, there are four points we should remember, says philosopher
Robert C. Solomon.

 Moral rules are important: In general, moral rules are rules that help society
function in a civilized way.
 Morality consists of universal rules: They apply to everyone, everywhere, and are
recognized by everyone as being necessary.
 Morals are objective: They do not consider personal preferences. Right is right
and wrong is wrong.
 Morality affects other people: Morality involves considering the well-being of
others as reflected by the Golden Rule: Do unto others as you would have them
do unto you.

Integrity

To have integrity is to be honest and sincere. Integrity is defined as adhering to a

moral code in daily decision making. When people and businesses possess integrity, it
means they can be trusted. On the other hand, companies that lack this quality and
mislead customers with inferior products or false advertising will suffer the
consequences.

Character

Ethics is not just how we think and act. It is also about character. Character drives
what we do when no one is looking. Each person has the ability to build, change, or
even destroy his or her own character. We can build our character through the way

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we live—by thinking good thoughts and performing good acts. Similarly, bad
thoughts and behavior can destroy our character.

A person with character has high morals and will act morally in all situations by
choice, not force. A person with character will honor his or her commitments.
Character pertains to organizations, as well. A company with high character is worthy
of trust and respect, acts honestly, and stands by its promises.

Laws

The law is a series of rules and regulations designed to express the needs of the
people. Laws protect people from the most blatant and despicable affront to morality,
such as murder, rape, and theft.

Laws frequently provide us with a sense of right and wrong and guide our behavior,
but not always. While murder is against the law, the law does not always stop
someone from killing another out of hatred, anger, or in defense of a personal
philosophy.

Laws are instituted as notions of justice and tend to be specific, yet diverse within
different societies. Laws have always had a strong connection to morality, ethics, and
values. But, not all laws are ethical.

Laws have legalized slavery, segregation, sexism, and apartheid. Although these laws
might have reflected society’s values at the time they were enacted, they could not nor
will they ever justify immoral behavior. Likewise in business, it is not unlawful to lie
to a coworker or on a job application, but both are ethically wrong.

These six concepts—ethics, values, morals, integrity, character, and laws—form the
foundation of trust upon which ethical business practice is built.

Professional Codes of Ethics

Many professions and corporations have developed codes of ethics to address their
unique business situations. In fact, 90 percent of Fortune 500 companies and nearly
half of all corporations have codes of ethics that can be applied to all employees. By
developing a code of ethics, an organization makes it clear that employees and
members cannot claim ignorance as a defense for unethical conduct.

Benefits of a Corporate Code of Ethics

Codes of ethics help employees strike a balance between the ends and the means used
to obtain them. This balance may be one of the most challenging aspects of being an
ethical organization.

The Federal Sentencing Guidelines for Organizations provide an additional incentive

for having corporate codes of ethics and ethics training. Companies that have made a
strong effort to prevent unethical and illegal behavior are likely to receive less severe
punishment should an employee be found guilty of breaking the law. The unethical
conduct of just a few employees can affect an entire corporation.

Benefits of a Professional Code of Ethics

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A professional code of ethics sets a standard for which each member of the profession
can be expected to meet. It is a promise to act in a manner that protects the public’s
well-being. A professional code of ethics informs the public what to expect of one’s
doctor, lawyer, accountant, or property manager. As long as professionals adhere to
these standards, the public is willing to have their professional associations create
and enforce their ethical codes.

In cases where these codes are repeatedly and grossly violated, the public’s likely
response is to demand protective legislation. The Sarbanes-Oxley Act of 2002 was
enacted in response to such violations and the ensuing public outcry. Most
professionals would prefer to police themselves, rather than have an externally
imposed set of regulations. That is a major reason why they create codes of ethics in
the first place.

Successful Implementation of a Code of Ethics

Within a corporation, top-down support is critical. If senior management does not act
ethically and support others who do, an organization’s ethical code will have little
meaning. It is critical for managers and executives to:

 act consistently with the company’s ethical standards

 apply those standards in dealing with employees

Acknowledging and rewarding those whose behaviors are consistent with a

company’s code of ethics proclaims to all that ethical behavior is truly valued. On the
other hand, promoting and providing bonuses to employees whose successes are due
in part to unethical behavior sends an unwanted message.

Remaining ethical is not a static issue. It requires review and evaluation. Companies
need to periodically review their priorities and make necessary adjustments.
Otherwise, their standards and training become outdated.

Ethics are the principles and values an individual uses to govern his activities and
decisions. In an organization, a code of ethics is a set of principles that guide the
organization in its programs, policies and decisions for the business. The ethical
philosophy an organization uses to conduct business can affect the reputation,
productivity and bottom line of the business.